Analyst: Voya Financial Undervalued, Ripe For Takeover

The institutional brokerage and fund manager BTIG opened its coverage of Voya Financial, formerly ING U.S., with a recommendation of "buy" on the company's stock.

ING Groep N.V. was forced by the European Commission to restructure in order to receive bailout funds from the Dutch government during the peak of the financial crisis in 2008, according to BTIG. One divestiture was ING U.S., the life insurer and asset manager which had its initial public offering on May 1.

"We think ING Groep's loss in this case could represent a significant gain for those who buy VOYA shares," BTIG analyst Mark Palmer wrote in a research note Monday.

Palmer wrote that BTIG believes Voya is significantly undervalued.

"Moreover, we believe Voya is a legitimate takeover target insofar as its $6.5 billion market capitalization wouldn't be particularly imposing for most of the firms that would potentially be interested in acquiring it," Palmer wrote.

Shares of Voya closed at $26.26, up $1.34 on Monday.

The financial services company has about 1,730 employees in Connecticut, of which about 1,650 work in a Windsor office. The others work at home.